The flowchart illustrates the standard purchasing process in SAP MM (Materials Management) with associated transaction codes. This process represents the core Procure-to-Pay (P2P) cycle in SAP, showcasing the key steps from initiating a purchase requisition to processing the supplier invoice. Here’s a detailed breakdown of the flowchart:

Creation of Purchase Requisition (PR) – ME51N 📝

• A Purchase Requisition can be created manually by the requester or automatically through various triggers such as Material Requirements Planning (MRP), maintenance or production orders, or sales orders.
• A release strategy can be set up at the purchase requisition level.

Conversion to Purchase Order (PO) – ME21N 🛒

• The Purchase Requisition is converted into a Purchase Order by the procurement department.
• A release strategy should be established for the Purchase Order.
• The PO is then sent to the supplier through various means, such as mail, fax, or Electronic Data Interchange (EDI).

Goods Receipt (GR) – MIGO 📦

• The Goods Receipt is posted when the goods are physically received or the service is rendered.
• Goods can be received partially if needed.
• The received goods or services must be checked before confirming the goods receipt.
• Posting a Goods Receipt can trigger the quality control process.
• An inbound delivery may be used to send notifications to third-party logistics providers

Invoice Receipt (IR) – MIRO 🧾

• The supplier’s invoice is checked before being entered into the system.